I was just scanning the Google News alerts I get this morning and spotted two stories, one from the Grauniad and one from the US version of themovechannel - both talking about prices plummeting in the US, California in particular.

The Grauniad claimed the worst hit cities were LA and Vegas, with prices falling 27% and 21% respectively, while themovechannel also said Southern CA was experiencing massive falls, including San Diego, Orange County etc.

Negative equity abounds. Now my knowledge of US cities and the property markets within them is limited but these seem like markets with appeal, credit crunch aside.

So would investing in them make sense? themovechannel story suggests buyers are still holding back, waiting for further falls. There are other issues too - would you invest on a fault line being just one!

I don't know - seems like there is an opportunity for someone with enough knowledge to me!

"Worst hit are previously booming areas such as Los Angeles, where prices are down 27%, and Las Vegas, which has seen a drop of 21%."

These areas might have been due for a correction if they were in a bubble, regardless of the the credit crunch. So they might not necessarily be a bargain, even now.

Good point. But IS that the case? In LA maybe...but Vegas? Not so sure. Depends where the property that's had the drops is I guess, even at that local level.

Yes, Vegas is hit very hard. My uncle has lived in Vegas for the last 30 years or so, and recently decided to pack up and cut his losses. I think he lost about 20-30% off the value of his property in the last year.

Guys, buy in under valued areas. Despite the credit crunch, property prices grew by 2.2% in 2007. The area is on the up. The dollar has started to strengthen. Invetsment companies (Assetz) (and Jet-to-let soon next year) start to have US investments on their books. The US will bounce back soon, maybe very soon.

The local market is stable and grows in line with inflation. Properties are sourced BMV with sales comparables as evidence, and most importantly, they cashflow like crazy !! Who cares about capital growth with net yields of 15-20% or more after management costs.

I know investors buying BMVs NMD in the UK but their cashflow is so poor that they are now almost bankrupt. Cash is king, especially in a recession...

In Rochester, NY the ROI on a cash purchase is HIGHER than ANY leveraged deal in the UK or Eastern Europe. Without the burden of a mortgage.

Mortgages are available, further enhancing ROI (50% in some cases).

So have you actually invested over there yourself or just some of your friends? I believe the US will always offer good long term oppurtunities for property investment and I would be interested to know more about the investments you mention. Where in particular do you recommend? Can you tell me more?

Yes I have invested myself for 3 years. I have helped other landlords too.
I bought a property $5,000 in january from a distressed seller, spent $8,000 refurbishing it and it is now let at $600 per month to a gradate student. NET NET yield after management costs is over 31% so I will get my money back in just over 3 years (I obviously paid cash).
I have a great team out there.

What kind of a property can you get for $5000?

You can't just leave it at that - tell us more!

where do you buy properties at USD5,000 ???

Please let us in to the secret

"where do you buy properties at USD5,000?"

New Orleans?